H.R. 3633

Digital Asset Market Clarity Act

Sponsor: J. French Hill

21 cosponsors
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Official summary

Written by the Congressional Research Service.

Digital Asset Market Clarity Act of 2025 or the CLARITY Act of 2025

This bill establishes a regulatory framework for digital commodities, defined by the bill as digital assets that rely upon a blockchain for their value.

The Commodity Futures Trading Commission must generally regulate digital commodities transactions, including digital commodity exchanges, brokers, and dealers. To qualify for trade on an exchange (1) a digital commodity’s blockchain must be mature, or on a blockchain system that has achieved decentralized control as defined by the bill; or (2) the issuer of the digital commodity must file certain reports. The bill establishes requirements for trade monitoring, recordkeeping, and the commingling of customer assets.  

The bill exempts digital commodities on mature blockchains (and digital commodities on blockchains expected to mature within certain timeframes) from Securities and Exchange Commission (SEC) registration requirements if annual sales fall under a certain amount and other requirements are met. The bill provides the SEC with jurisdiction over digital commodity activities and transactions engaged in by certain brokers and dealers on alternative trading systems and by national securities exchanges. 

Digital commodity exchanges, brokers, and dealers are subject to the Bank Secrecy Act for anti-money laundering and related purposes.

The bill also sets forth requirements for alternative trading systems, previously issued digital commodities, and provisional registration until the bill is implemented.  

For more information on this bill, see CRS Insight IN12583, Crypto Legislation: An Overview of H.R. 3633, the CLARITY Act.

Text of the bill

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I Definitions; Rulemaking; Expedited Registration

II Offers and Sales of Digital Commodities

III Registration for Intermediaries at the Securities and Exchange Commission

IV Registration for Digital Commodity Intermediaries at the Commodity Futures Trading Commission

V Innovation and Technology Improvements

Sec. 503. Codification of LabCFTC Since introduced

(a) In general. Section 18 of the Commodity Exchange Act (7 U.S.C. 22) is amended by adding at the end the following:

Text this section adds to the law

(c) LabCFTC

(1) Establishment. There is established in the Commission LabCFTC.

(2) Purpose. The purposes of LabCFTC are to—

(A) promote responsible financial technology innovation and fair competition for the benefit of the American public;

(B) serve as an information platform to inform the Commission about new financial technology innovation; and

(C) provide outreach to financial technology innovators to discuss their innovations and the regulatory framework established by this Act and the regulations promulgated thereunder.

(3) Director. LabCFTC shall have a Director, who shall be appointed by the Commission and serve at the pleasure of the Commission. Notwithstanding section 2(a)(6)(A), the Director shall report directly to the Commission and perform such functions and duties as the Commission may prescribe.

(4) Duties. LabCFTC shall—

(A) advise the Commission with respect to rulemakings or other agency or staff action regarding financial technology;

(B) provide internal education and training to the Commission regarding financial technology;

(C) advise the Commission regarding financial technology that would bolster the Commission’s oversight functions;

(D) engage with academia, students, and professionals on financial technology issues, ideas, and technology relevant to activities under this Act;

(E) provide persons working in emerging technology fields with information on the Commission, its rules and regulations, and the role of a registered futures association; and

(F) encourage persons working in emerging technology fields to engage with the Commission and obtain feedback from the Commission on potential regulatory issues.

(5) Report to Congress

(A) In general. Not later than October 31 of each year after 2025, LabCFTC shall submit to the Committee on Agriculture of the House of Representatives and the Committee on Agriculture, Nutrition, and Forestry of the Senate a report on its activities.

(B) Contents. Each report required under paragraph (1) shall include—

(i) the total number of persons that met with LabCFTC;

(ii) a summary of general issues discussed during meetings with the person;

(iii) information on steps LabCFTC has taken to improve Commission services, including responsiveness to the concerns of persons;

(iv) recommendations made to the Commission with respect to the regulations, guidance, and orders of the Commission and such legislative actions as may be appropriate; and

(v) any other information determined appropriate by the Director of LabCFTC.

(C) Confidentiality. A report under paragraph (A) shall abide by the confidentiality requirements in section 8.

(6) Records and engagement. The Commission shall—

(A) maintain systems of records to track engagements with the public through LabCFTC;

(B) store communications and materials received in connection with any such engagement in accordance with Commission policies and procedures on data retention and confidentiality; and

(C) take reasonable steps to protect any confidential or proprietary information received through LabCFTC engagement.

(b) Conforming amendments. Section 2(a)(6)(A) of such Act (7 U.S.C. 2(a)(6)(A)) is amended—

(1) by striking paragraph and in and inserting paragraph,; and

(2) by inserting and section 18(c)(3), before the executive.

(c) Effective date. The Commodity Futures Trading Commission shall implement the amendments made by this section (including complying with section 18(c)(7) of the Commodity Exchange Act) within 180 days after the date of the enactment of this Act.

VI Anti-CBDC Surveillance State Act

I Responsible securities innovation

II Protecting against illicit finance

III Responsible innovation in decentralized finance

IV Responsible banking innovation

V Responsible regulatory innovation

VI Protecting software developers and software innovation

VII Protecting customer property

VIII Customer protection

IX Other matters